Commissioner of Taxation v. Creer, J.N. [1986] FCA 166

CATCHWORDS

INCOME TAX ASSESSMENT - Claim for deduction of rent and fees under s.51(1) of the Income Tax Assessment Act 1936 - Nature of outgoings made pursuant to a lease - Whether amount described as "rent" was an outgoing of a capital or income nature - Consideration of the character of the advantage

sought by the taxpayer in entering into the lease - Substance

of the transaction examined - Relevance of purpose.

Income Tax Assessment Act 1936 s.51(1)

Sun Newspapers Ltd and Associated Newspapers Ltd v Federal Commissioner of Taxation 61 CLR 337, Federal Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1977-78) 140 CLR 645, Europa O11 (NZ) Limited v Inland Revenue Commissioner C1976] 1 WLR 464, Magna Alloys and Research Pty Ltd v Federal Commissioner of Taxation (1980) 33 ALR 213, John

Fairfax and Sons Pty Limited v Federal Commissioner of Taxation (1950) 101 CLR 30, Ronpibon Tin N.L. and Tongkah

Compound N.L. v Federal Commissioner of Taxation (1949) 78 CLR 47, Ure v Federal Commissioner of Taxation (1981) 34 ALR 237,

Federal Commissioner of Taxation v Ilbery Commissioner of Taxation v Ilbery (1981) 38 ALR 172, Nevill and Company Limited v Federal Commissioner of Taxation (1937) 56 CLR 290, Federal Commissioner of Taxation v Midland

Railway Co of Western Australia Limited (1962) 85 CLR 306 referred to.

NSW G.71 of 1985 THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v_JAMES NEILL CREER

Fisher, Wilcox and Jackson JJ Sydney 5 May 1986

OSRAL Ce re "RUSE At

pair CIPAY 2 _ mnanstay eet A

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. . - : rs eee A ee anne

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION

No. G.71 of 1985

ON_APPEAL FROM THE SUPREME COURT _OF NEW SOUTH WALES ADMINISTRATIVE LAW DIVISTON

BETWEEN : THE COMMISSIONER OF : TAXATION OF THE COMMONWEALTH OF AUSTRALIA